CAG finds serious lapses in HUD department

The Comptroller Auditor General (CAG) has found serious lapses in the fund utilization by Housing and Urban Development (HUD) Department.

In its latest report CAG has highlighted the shortfall of state share worth Rs 33 core which resulted in delay in release of funds, mis-utilisation of Rs 1.07 core and non-refund of interest of Rs 11.48 crore.

“In addition, Rs 31.84 core was kept in fixed deposits instead of utilising them for the purpose for which they were released,” CAG reveals.

CAG in its report has found gross lapses in execution of projects by the department stating that none of the 34 projects costing Rs 141.38 Cr taken up for execution between 2007-08 and 2015-16 have been completed despite expenditure of Rs 101.16 core,”

“The detailed Project reports were not based on the authentic data of revenue authorities nor had beneficiaries’ survey been carried out before project formulation,” the CAG report reads.

CAG has also depicted grim picture of the HUD department in managing solid waste management projects as only three out of twelve projects have been completed due to non-availability of sites.

“Sewerage projects in Jammu and Srinagar could not be fructified despite expenditure of Rs 158 .45 crore due to poor planning and conceptualization,” CAG states.

CAG has highlighted poor performance in the performance of JNNURM- a Government of India (GoI) initiative in Jammu and Kashmir.

“”A performance audit of the implementation of the scheme during the period 2011-16 brought out that the implementation of the JNNURM scheme was hampered by short release of funds by the state government,” it reads.

CAG has found that J&K government had failed to carry out reforms envisaged under the scheme guideline relating to the transfer of certain powers to urban local bodies and city planning and development as well as in urban transport sector “which would have facilitated achievement of the overall objective of holistic development of urban infrastructure on a sustainable basis.”

It may be recalled that JNNURM was launched in 2007 in J&K state by the GoI and consisted of four sub-missions viz. urban infrastructure and Governance, basic services to urban poor, urban infrastructure development scheme for small and medium towns and integrated housing and slum development programme.

“A total of 115 projects were sanctioned between year 2006-07 and 2013-14 out of which only 20 were completed (March 2016). The financing pattern of the scheme is 90 percent central share and 10 percent state share,” CAG reports states.

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